Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

In the first quarter of 2023, the Company realigned its internal organization to align with the Company’s strategy, resulting in changes to the Company’s operating segments. Historically, the Company operated through one reportable segment comprised of two operating segments: (i) Mobility Technologies and (ii) Diagnostics and Repair Technologies. Subsequent to the realignment, the Company now operates through three reportable segments which align to the Company’s three operating segments: (i) Mobility Technologies, (ii) Repair Solutions and (iii) Environmental & Fueling Solutions.

The Company’s Coats (Hennessy) business, which is currently held for sale, is presented in Other. The Company’s Global Traffic Technologies business, which was divested during April 2023, is presented in Other for periods prior to the divestiture. Refer to Note 13. Divestitures and Assets and Liabilities Held for Sale for further discussion of the Company’s Coats (Hennessy) and Global Traffic Technologies businesses.

Segment operating profit is used as a performance metric by the chief operating decision maker (“CODM”) in determining how to allocate resources and assess performance. Segment operating profit represents total segment sales less operating costs attributable to the segment, which does not include unallocated corporate costs and other operating costs not allocated to the reportable segments as part of the CODM’s assessment of reportable segment operating performance, including stock-based compensation expense, amortization of intangible assets, restructuring costs, transaction- and deal-related costs, and other costs not indicative of the segment’s core operating performance. As part of the CODM’s assessment of the Repair Solutions segment, a capital charge based on the segment’s financing receivables portfolio is assessed by Corporate (the “Repair Solutions Capital Charge”). The unallocated corporate and other operating costs are presented in Corporate & other unallocated costs in the reconciliation to earnings before income taxes below. Intersegment amounts are not significant and have been eliminated.

The Company’s CODM does not review any information regarding total assets on a segment basis.

Prior period segment results have been presented in conformity with the Company’s new reportable segments. Segment results for the periods indicated were as follows:

	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Sales:
Mobility Technologies	$	238.8	$	210.6	$	484.7	$	418.2
Repair Solutions(a)	158.4		149.7		339.8		314.1
Environmental & Fueling Solutions	339.3		375.3		653.1		703.5
Other	27.9		40.8		63.2		88.7
Total	$	764.4	$	776.4	$	1,540.8	$	1,524.5
Segment operating profit:
Mobility Technologies	$	44.7	$	42.6	$	92.6	$	83.7
Repair Solutions(b)	41.6		41.6		88.9		88.6
Environmental & Fueling Solutions	95.2		98.5		175.9		180.5
Other	2.2		3.2		6.0		8.3
Segment operating profit	183.7		185.9		363.4		361.1
Corporate & other unallocated costs(b)	(63.1)		(49.4)		(109.0)		(89.8)
Operating profit	120.6		136.5		254.4		271.3
Interest expense, net	(23.9)		(15.3)		(47.9)		(28.2)
Gain on sale of business	34.1		—		34.1		—
Gain on previously held equity interests from combination of business	—		—		—		32.7
Unrealized (loss) gain on equity securities measured at fair value	—		(80.0)		—		83.0
Other non-operating expense, net	(0.5)		—		(1.4)		(0.1)
Earnings before income taxes	$	130.3	$	41.2	$	239.2	$	358.7
Depreciation expense:
Mobility Technologies	$	6.8	$	4.7	$	12.9	$	10.7
Repair Solutions	0.5		0.4		0.9		0.8
Environmental & Fueling Solutions	3.8		3.6		7.4		7.2
Other	—		0.5		—		0.9
Corporate	0.2		0.2		0.5		0.4
Total	$	11.3	$	9.4	$	21.7	$	20.0

(a) Includes interest income related to financing receivables of $19.0 million, $18.2 million, $38.8 million and $36.6 million for the three and six months ended June 30, 2023 and July 1, 2022, respectively.

(b) Includes the Repair Solutions Capital Charge of $10.3 million, $9.9 million, $20.5 million and $19.8 million for the three and six months ended June 30, 2023 and July 1, 2022, respectively.